Nebius Stock Surged 200% in Just 1 Year. Is It Still a Buy?
Article excerpt
Nebius is benefiting from a massive AI infrastructure boom. The business's economics are improving. Nebius looks exciting, but the stock already reflects considerable optimism. Nebius Group 's (NASDAQ: NBIS) stock has surged after the artificial intelligence infrastructure company delivered a blockbuster second quarter. Revenue jumped 454% year over year to $582 million,while adjusted EBITDA reached $236 million. The company also signed four AI cloud contracts worth more than $1 billion each. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The business is clearly moving fast. But so is the stock. With shares trading at more than 200% return in just one year and the company valued at roughly $60 billion (as of writing), investors are asking an important question: Has Nebius already gone too far, or could the stock still have room to run? Image source: Getty Images. Nebius doesn't build AI models like ChatGPT. Instead, it provides the computing infrastructure needed to build and run them. Think of Nebius as a company that rents out extremely powerful computers to businesses developing artificial intelligence. Those computers require expensive Nvidia GPUs...
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Nebius spent about $5.7 billion on it in the second quarter alone.
